Egypt is exploring the establishment of a local factory to produce alternative soil, aiming to cut imports, lower agricultural production costs and support the expansion of modern, high-value farming and agri-exports.
Industry Minister Khaled Hashem had talks with Pekka Tennilä, CEO of Kekkilä-BVB, on the company’s plan to establish a factory in Egypt in partnership with Egyptian agritech company Agriventure. The facility is planned for the Suez Canal Economic Zone and will produce alternative growing soil for precision farming.
Hashem said localizing alternative growing-soil production is a strategic priority for supporting modern and protected agriculture and increasing value added in agro-industrial manufacturing.
He added that agricultural manufacturing technologies are among the ministry’s priorities for linking scientific research with industrial outputs, meeting export requirements, reducing production costs and narrowing the import gap.
The minister also highlighted the importance of deploying advanced technologies and innovative solutions across productive activities, particularly those that help conserve water and improve resource efficiency in agriculture.
Such solutions, he said, can support the growth and competitiveness of agro-industrial projects and strengthen their export potential.
Kekkilä-BVB company officials said alternative growing media account for around 30% of the cost of precision farming, underscoring the importance of local production in reducing agricultural costs. The planned factory will serve the domestic market while expanding exports to European, African and Arab markets.
Hashem also said Agriventure could participate in the ministry’s “Productive Village” initiative, particularly in villages with a competitive edge in medicinal and aromatic plants and export-oriented crops.
The initiative aims to support balanced industrial development and curb illegal migration and population movement from the regions by leveraging the comparative advantages of each governorate and village. It includes providing small industrial workshops and complexes, concessional financing for small investors, and technical support to connect small businesses with medium- and large-scale factories and strengthen supply-chain integration.
The minister added that Egypt’s industrial map will help identify the comparative advantages of each village and potentially allocate sites for precision-farming projects, particularly in villages known for producing medicinal and aromatic plants and export-oriented crops.
Egypt, Kekkilä-BVB review plans for alternative soil factory in SCZone Egypt Independent.
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